State Grants Fund Major Upgrades At Otter Tail Phelps Mill Park
Otter Tail County received a $713,747 grant award to fund Phase 2 improvements at Phelps Mill Park, part of a statewide $11,326,845 funding package recommended by the Greater Minnesota Regional Parks and Trails Commission. The award, funded through the Parks and Trails Legacy Fund, requires legislative approval and will expand accessibility, fishing opportunities, and visitor amenities along the Otter Tail River.
The Greater Minnesota Regional Parks and Trails Commission completed its review on December 5, 2025 and selected Phelps Mill Park for a $713,747 grant to support Phase 2 of the park master plan. The recommendation is one of 12 projects statewide totaling $11,326,845 for Fiscal Year 2027, and the grants will be forwarded to the Minnesota Legislature for approval. Funding comes from the Parks and Trails Legacy Fund, created by the 2008 Clean Water, Land and Legacy Amendment, and is limited to parks and trails of regional or statewide significance.
Otter Tail County plans to use the award to enhance ADA accessible walking trails and to construct a connection between the park’s two existing boardwalks. The county will add three permanent on shore fishing areas along the Otter Tail River, upgrade the playground, build an amphitheater area, and complete parking lot improvements along with restoration of other park infrastructure. County officials also said the grant will be combined with a $300,000 Minnesota Department of Natural Resources Get Out More Program award to complete the Phase 2 scope.
For local residents the project represents both immediate recreational benefits and longer term policy questions about maintenance and regional planning. Improved ADA accessible access will broaden usability for residents with mobility limitations, while permanent fishing areas and an amphitheater are likely to increase day visits and support small scale tourism in communities surrounding Underwood. Parking and infrastructure upgrades aim to address seasonal congestion and safety concerns that have emerged as the park’s popularity has grown.
The funding pathway underscores the layered governance involved in public recreation projects. The Parks and Trails Legacy Fund imposes statutory restrictions on eligible projects, the regional commission sets funding priorities, and final release of funds is contingent on legislative approval and subsequent project oversight at the county level. Voters and local officials will want to monitor the legislative review process and the county plan for long term operations and maintenance costs as construction moves forward.
